Question

You deposit $125 in a savings account that earns 5% annual interest compounded yearly. Find the balance in the account after the given amount of time.

Answer 1

125 x.5 =62.5 times 12 months equals 750

Answer 2

The balance after 1 year is $131.25

The balance after 2 years is $137.81

The balance after 5 years is  $159.54

The balance after 20 years is $331.66

What is the balance after the given time?

The formula for calculating future value:

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate
• m = number of compounding
• N = number of years

Balance after 1 year = $125(1.05) = 131.25

Balance after 2 years = $125(1.05^2) = 137.81

Balance after 5 years = $125(1.05^5) = 159.54

Balance after 20 years = $125(1.05) =331.66

To learn more about future value, please check: https://brainly.com/question/18760477

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